Securities and Exchange Commission (SEC) on July 9, 2020, approved the P15 billion initial public offering of Ayala Land’s REIT or AREIT. This is the very first Real Estate Investment Trust (REIT) offering in the Philippine Market. AREIT is a subsidiary of Ayala Land that owns three commercial properties in Manila namely, Solaris One, Ayala North Exchange, and McKinley Exchange. These properties have a total gross leasable area (GLA) of 152,756 square meters.
In a statement on Friday, July 10, the corporate regulator said the commission’s en banc considered “favorably” the registration statement of Ayala Land, Inc. for its proposed REIT initial public offering of 1.092 billion common shares on the main board of the Philippine Stock Exchange (PSE).
The public offering will be on July 27 to 31, and listing in the PSE will be on August 7, 2020, subject to the PSE’s approval. The registration statement covers up to 47.86 million new common shares and up to 409.02 million existing common shares for public offering, with an overallotment option of up to 45.69 million secondary shares, at a maximum offer price of P30.05 per share.
Ayala REIT is attractive because 36 percent of its office portfolio is Peza (Philippine Economic Zome Authority)-accredited. The benefits enjoyed by tenants of Peza-accredited facilities linked with the difficulty of securing new Peza accreditation in Manila is another reason why AREIT’s offices should continue enjoying high occupancy rates going forward. AREIT has no long-term debt. This gives the company the opportunity to borrow funds needed to acquire other projects including Teleperformance Cebu. This will help the company grow its leasing income, benefiting owners of AREIT as cash dividends also increase.
-Stockbytes PH, July 13 2020,
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